SRA Announces Financial Results for Third Quarter of Fiscal Year 2008

by via PRNewswire On May 6, 2008

FAIRFAX, Va. , May 6 /PRNewswire-FirstCall/ -- SRA International, Inc.
(NYSE: SRX), a leading provider of technology and strategic consulting
services and solutions to government organizations, today announced operating
results for the third quarter of fiscal year 2008, which ended March 31, 2008 .

Revenue for the quarter was $376.0 million, up 18% from $317.6 million in
the March 2007 quarter. Operating income for the quarter was $29.6 million,
for an operating margin of 7.9%. Net income was $18.0 million, for a net
margin of 4.8%. Diluted earnings per share for the quarter were $0.30, up
$0.04 year-over-year.

SRA President and CEO Stan Sloane said, "We were pleased to win nearly
three times the volume of contract awards that we won in the same quarter last
year. Some of these programs will take time to ramp up because of protested
award decisions, but they are a positive indicator for future growth."

"We're also enthusiastic about our agreement to acquire Era Corporation,
which we announced last week. Era fits nicely into our plan to increase the
product-based component of our business and continue to expand our
international footprint. We look forward to completing the transaction and
joining forces with an air surveillance market leader."

CFO and Executive Vice President for Operations Steve Hughes added, "Third
quarter revenue grew 18% year-over-year, while the low-margin rebillable
component declined as planned. This improvement in the business mix led to
better operating margins. Operating margin increased to 7.9% in the quarter,
70 basis points better than a year ago."

New Business Awards

The Company won new business in the third quarter with potential value of
$503 million, if all options are exercised. As of March 31, 2008 , the
Company's backlog of signed business orders was $3.9 billion, an increase of
11% year-over-year.

The Company was also awarded several multiple-award, indefinite
delivery/indefinite quantity (ID/IQ) contracts in the March quarter. ID/IQ
vehicles are not included in the Company's quarterly bookings total, but they
provide a solid foundation for future growth.

Share Repurchase

In accordance with a repurchase authority established by its Board of
Directors in 2007, SRA executed an open market share buyback during the March
quarter. The Company repurchased about 754,000 shares of its stock in the
quarter, deploying a total of $17.3 million in cash. The average share price
for repurchased shares was $22.91. Although the Company's acquisition program
remains its top priority for capital deployment, management may elect to
continue opportunistic use of its repurchase authority in the future.

Forward Guidance

The Company is updating its forward guidance for the fourth quarter and
full fiscal year 2008. The table below represents management's current
expectations about the Company's future financial performance, based on
information available at this time. The forward guidance in this table does
not include any effect for the pending acquisition of Era Corporation or any
acquisitions SRA might make in the future.

The updated revenue guidance is lower than previously issued guidance
primarily because of a reduced direct material revenue forecast. Given the
consistent June quarter Diluted EPS range, the implied profit margins are
higher in this revised guidance. These changes are consistent with the higher
labor services component of revenue in the latest forecast.

Conference Call

SRA senior management will hold a conference call to discuss these
operating results and forward guidance today at 5:00 PM Eastern. Interested
parties may listen to the conference call by dialing 888-287-9905
(U.S./ Canada ) or 706-643-7540 (Other) with passcode 42439207. The conference
call will be Webcast simultaneously through a link on the SRA Web site
(www.sra.com). A replay of the conference call will be available
approximately two hours after the conclusion of the call from May 6 through
May 20, 2008 by dialing 800-642-1687 (U.S./ Canada ) or 706-645-9291 (Other) and
entering passcode 42439207.

About SRA International, Inc.

SRA is a leading provider of technology and strategic consulting services
and solutions -- including systems design, development, and integration; and
outsourcing and managed services -- to clients in national security, civil
government, and health care and public health markets. The Company also
delivers business solutions for contingency and disaster response planning,
information assurance, business intelligence, environmental strategies,
enterprise architecture, infrastructure management, and wireless integration.

FORTUNE(R) magazine has chosen SRA as one of the "100 Best Companies to
Work For" for nine consecutive years. The Company's 6,400 employees serve
clients from its headquarters in Fairfax, Virginia , and offices around the
world. For additional information on SRA, please visit www.sra.com.

Any statements in this press release about future expectations, plans, and
prospects for SRA, including guidance about future financial results and
statements about the estimated value of contracts and work to be performed,
and other statements containing the words "estimates," "believes,"
"anticipates," "plans," "expects," "will," and similar expressions, constitute
forward-looking statements within the meaning of The Private Securities
Litigation Reform Act of 1995. Actual results may differ materially from
those indicated by such forward-looking statements as a result of various
important factors, including: our dependence on our contracts with federal
government agencies, particularly within the U.S. Department of Defense, for
substantially all of our revenue; our dependence on our GSA schedule contracts
and our position as a prime contractor on government-wide acquisition
contracts to grow our business; our ability to attract and retain skilled
employees; any reductions in or reallocations of the U.S. defense budget or
the budgets for civil government agencies; the market price of the company's
stock prevailing from time to time; the nature of other investment
opportunities presented to the company from time to time; the company's cash
flows from operations; and other factors discussed in our latest quarterly
report on Form 10-Q filed with the Securities and Exchange Commission on
February 7, 2008 . In addition, the forward-looking statements included in
this press release represent our views as of May 6, 2008 . We anticipate that
subsequent events and developments will cause our views to change. However,
while we may elect to update these forward-looking statements at some point in
the future, we specifically disclaim any obligation to do so. These forward-
looking statements should not be relied upon as representing our views as of
any date subsequent to May 6, 2008 .